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Department of Justice

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FOR IMMEDIATE RELEASE

Tuesday, March 1, 2011

Arch Coal to Pay $4 Million to Settle Clean Water Act Violations in Appalachian Mining Operations

WASHINGTONArch Coal Inc., the second largest supplier of coal in the United States, has agreed to pay a $4 million penalty to settle alleged violations of the Clean Water Act in Virginia, West Virginia and Kentucky, the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice announced today. Under the settlement, Arch Coal will implement changes to its mining operations in Virginia, West Virginia and Kentucky to ensure compliance with the Clean Water Act.

“The measures required by this settlement will prevent pollutants from entering waterways and bring wide-ranging improvements to mining operations in four mining complexes across three states,” said Ignacia. S. Moreno, Assistant Attorney General of the Environment and Natural Resources Division of the Department of Justice. “These changes will mean a healthier environment for local communities and will help ensure Arch Coal’s compliance with the Clean Water Act.”

“Violations at mining operations can have significant environmental and public health consequences, including the pollution of the waters that people use for drinking, swimming and fishing,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “It is critical that companies operating next door to homes, schools and other businesses meet the standards established to protect the health and the environment for these communities.”

As part of the settlement, Arch Coal has agreed to take measures that will prevent an estimated two million pounds of pollution from entering the nation’s waters each year. Arch will also implement a treatment system to reduce discharges of selenium, a pollutant found in mine discharges. Selenium runoff from mining operations can build up in streams and have an adverse impact on aquatic organisms.

A joint federal-state complaint filed in U.S. District Court in the Southern District of West Virginia by the United States, West Virginia and Kentucky alleged numerous violations of Arch Coal’s permits that set limits on pollutants to be discharged into streams. The alleged excess discharges of iron, total suspended solids, manganese and other pollutants reflect deficiencies in operation and maintenance of wastewater treatment systems in place at four of the company’s mining facilities: Coal Mac Inc; Lone Mountain Processing Inc; Cumberland River Coal Co.; and Mingo Logan Coal Co.

As part of the settlement, the company has agreed to implement a series of inspections, audits and tracking measures to ensure treatment systems are working properly and that future compliance is achieved. The company is also required to develop and implement a compliance management system to help foster a top-down, compliance and prevention-focused approach to Clean Water Act issues.

Under the settlement, $2 million of the $4 million civil penalty will be paid to the United States and the remaining $2 million will be divided between West Virginia and Kentucky based on the percentage of alleged violations in each state.

The consent decree, which is subject to a 30-day public comment period and final court approval, is available at: www.justice.gov/enrd/